UBA Targets N239bn Through Rights Issue
The United Bank for Africa (UBA) plans to raise N239.4 billion through a rights issue to existing shareholders.
A statement from the bank on Thursday, disclosed that the bank is offering a rights issue of 6.83 billion ordinary shares of 50 kobo each at N35 per share.
It added that the offering opened on November 15, and gives existing shareholders the opportunity to buy additional shares in proportion to their current holdings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 5.
Tony Elumelu, group chairman of UBA, while speaking to shareholders said the rights issue is the first step in its broader capital-raising programme.
“UBA’s rights issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders,” Elumelu said.
“The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry.”
Elumelu said the funds will be used for regulatory compliance, expand UBA’s lending capacity, investment in digital infrastructure, support sustainable business practices, and expand its African operations.
